How to use Ensign Charting Software and Trading Tips

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Treasure Bond Butterfly Pattern

Larry Pesavento: ‘Treasury bonds are forming a butterfly pattern along with a three drive pattern at the 149-150 level basis in March treasury bonds. This pattern is easily identified by looking at the formations tool that gives you the AB equal CD pattern. In addition, the Gartley tool allows you to see the expansion pattern forming the butterfly which also comes in at the 1.27 level. The cycle tool illustrates the 24 day cycle that is repeated twice and is due to crest in the middle of the cycle around January 23 which is the new moon and the start of the Chinese new year the year of the Dragon. Should treasury bonds get above the 152 level this trade would most probably be wrong and the loss taken. There is also an ETF for the 30 year treasury bond that has good liquidity, symbol TBT, and it could be bought at $16.80 per share with a stop of $14.80.’